Unit 6 Topic 1-3 Quiz Honors Civics & Economics 1. What might a company do in order to increase profits? A. begin working with businesses that do not make profits B. stop selling to shareholders C. hire as many new workers as its budget will allow D. retrain workers in more efficient technologies 2. In a market economic system, what happens to the price of a good when its supply increases and its demand decreases? A. The price increases B. The price remains the same C. The price fluctuates D. The price decreases
3. What economic policy would a supporter of laissez-faire economics support? A. Antitrust B. Business Regulation C. Free Enterprise D. Taxation
4. A consumer wants to buy a new computer. Although the computer will be more expensive, it will be faster and more efficient than the less expensive model. Which term describes such an economic choice? A. Competition B. Scarcity C. Trade-off D. Supply
5. What important economic concept is evident when a student wears a shirt made in Malaysia, drives a car made in Germany, and eats fruit produced in Mexico? A. Stock exchange B. Exchange of money C. Marketplace economics D. Global Interdependence
6. A person opens a hair salon in Siler City. This is an example of which factor of production? A. Capital B. Entrepreneurship C. Natural Resources D. Machinery
7. Which best explains the concept of scarcity? A. Limited wants, limited resources B. Unlimited wants, unlimited resources C. Limited wants, unlimited resources D. Unlimited wants, limited resources
8. In which circumstance would a shoe store reduce the price of shoes? A. Equilibrium B. Shortage C. Specialization D. Surplus
9. A nation where the basic economic decisions are made by a central authority represents which type of economy? A. Traditional B. Mixed C. Market D. Command
10. What is the term for the exchange of money for the purchase of goods and services? A. a face-off B. a tip-off C. a trade-off D. a payoff
11. It you buy a new CD and as a result you cannot afford to buy a stereo to play it on, economists would say this is a good example of which of the following? A. Opportunity cost B. Experience gain C. Value deduction D. Currency accrual
12. What are the factors of production? A. The resources necessary to produce goods and services B. The number of steps it takes to make a product C. The mathematical equations that determine the GDP D. The goods and services that a country produces
13.Which of the following is not a feature of Capitalism?
A. Federal control over production
B. Private property rights
C. Competition between sellers
D. Consumer sovereignty
13. On a graph, “Quantity demanded” and “price” will always move in opposite directions in accordance with which law? A. the law of demand B. the law of supply and demand C. the law of market demand D. the law of supply
14. Which of the following pairs is not an example of substitute? A. Dollar coins for dollar bills B. Mountain Lightening for Mountain Dew C. Great Value Mac n Cheese for Kraft Mac n Cheese D. Margarine for butter
15. Which of the following pairs is not an example of compliments? A. Computers and software B. Tennis rackets and tennis balls C. Cars and hydroelectricity D. Lamps and light bulbs
16. In the major economies of the world, which of the following sets of countries have the most similar system to the U.S.? A. Cuba , China B. Russia, China C. France, Great Britain D. Canada, Cuba
17. Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie? A. Opportunity Cost B. Fixed Cost C. Marginal Cost D. Residual Cost
18. In a command economy, who are the prices of goods and services determined? A. Market forces of supply & demand B. Independent Agencies C. The Central Government D. Business Owners
19. Which of the following is not a question all societies and producers must ask? A. What to produce B. How much to produce C. For whom to produce D. What is the resale value
20. In the circular flow of economic activity which of the following is not true? A. Businesses & Consumers rely on each other B. Businesses work alone and do not interact in the factor market C. Consumers are considered the factor market D. Businesses are considered the product market
21. What happens when a countries GDP goes up? A. The economy expands B. Prices are inflated C. Unemployment rises D. Economy suffers a recession
22. What is the effect of specialization on the American economy? A. Interdependence B. Demand C. Supply D. Price changes
23. Which type of economy is the United States MOST like? A. Command B. Traditional C. Market D. Communist
24. To determine a price for a product you must complete which of the following? A. Supply/Demand Curve B. Supply Curve C. Cost/Benefit Analysis D. Demand Schedule
25. If a company sends its jobs overseas, which of the following occurs? A. Outsourcing B. Global Interdependence C. Specialization D. Cost/Benefit analysis
Honors Civics & Economics
1. What might a company do in order to increase profits?
A. begin working with businesses that do not make profits
B. stop selling to shareholders
C. hire as many new workers as its budget will allow
D. retrain workers in more efficient technologies
2. In a market economic system, what happens to the price of a good when its supply increases and its demand decreases?
A. The price increases
B. The price remains the same
C. The price fluctuates
D. The price decreases
3. What economic policy would a supporter of laissez-faire economics support?
A. Antitrust
B. Business Regulation
C. Free Enterprise
D. Taxation
4. A consumer wants to buy a new computer. Although the computer will be more expensive, it will be faster and more efficient than the less expensive model. Which term describes such an economic choice?
A. Competition
B. Scarcity
C. Trade-off
D. Supply
5. What important economic concept is evident when a student wears a shirt made in Malaysia, drives a car made in Germany, and eats fruit produced in Mexico?
A. Stock exchange
B. Exchange of money
C. Marketplace economics
D. Global Interdependence
6. A person opens a hair salon in Siler City. This is an example of which factor of production?
A. Capital
B. Entrepreneurship
C. Natural Resources
D. Machinery
7. Which best explains the concept of scarcity?
A. Limited wants, limited resources
B. Unlimited wants, unlimited resources
C. Limited wants, unlimited resources
D. Unlimited wants, limited resources
8. In which circumstance would a shoe store reduce the price of shoes?
A. Equilibrium
B. Shortage
C. Specialization
D. Surplus
9. A nation where the basic economic decisions are made by a central authority represents which type of economy?
A. Traditional
B. Mixed
C. Market
D. Command
10. What is the term for the exchange of money for the purchase of goods and services?
A. a face-off
B. a tip-off
C. a trade-off
D. a payoff
11. It you buy a new CD and as a result you cannot afford to buy a stereo to play it on, economists would say this is a good example of which of the following?
A. Opportunity cost
B. Experience gain
C. Value deduction
D. Currency accrual
12. What are the factors of production?
A. The resources necessary to produce goods and services
B. The number of steps it takes to make a product
C. The mathematical equations that determine the GDP
D. The goods and services that a country produces
13.Which of the following is not a feature of Capitalism?
A. Federal control over production
B. Private property rights
C. Competition between sellers
D. Consumer sovereignty
13. On a graph, “Quantity demanded” and “price” will always move in opposite directions in accordance with which law?
A. the law of demand
B. the law of supply and demand
C. the law of market demand
D. the law of supply
14. Which of the following pairs is not an example of substitute?
A. Dollar coins for dollar bills
B. Mountain Lightening for Mountain Dew
C. Great Value Mac n Cheese for Kraft Mac n Cheese
D. Margarine for butter
15. Which of the following pairs is not an example of compliments?
A. Computers and software
B. Tennis rackets and tennis balls
C. Cars and hydroelectricity
D. Lamps and light bulbs
16. In the major economies of the world, which of the following sets of countries have the most similar system to the U.S.?
A. Cuba , China
B. Russia, China
C. France, Great Britain
D. Canada, Cuba
17. Which type of cost occurs when an individual pays for a piano lesson instead of going to a movie?
A. Opportunity Cost
B. Fixed Cost
C. Marginal Cost
D. Residual Cost
18. In a command economy, who are the prices of goods and services determined?
A. Market forces of supply & demand
B. Independent Agencies
C. The Central Government
D. Business Owners
19. Which of the following is not a question all societies and producers must ask?
A. What to produce
B. How much to produce
C. For whom to produce
D. What is the resale value
20. In the circular flow of economic activity which of the following is not true?
A. Businesses & Consumers rely on each other
B. Businesses work alone and do not interact in the factor market
C. Consumers are considered the factor market
D. Businesses are considered the product market
21. What happens when a countries GDP goes up?
A. The economy expands
B. Prices are inflated
C. Unemployment rises
D. Economy suffers a recession
22. What is the effect of specialization on the American economy?
A. Interdependence
B. Demand
C. Supply
D. Price changes
23. Which type of economy is the United States MOST like?
A. Command
B. Traditional
C. Market
D. Communist
24. To determine a price for a product you must complete which of the following?
A. Supply/Demand Curve
B. Supply Curve
C. Cost/Benefit Analysis
D. Demand Schedule
25. If a company sends its jobs overseas, which of the following occurs?
A. Outsourcing
B. Global Interdependence
C. Specialization
D. Cost/Benefit analysis